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Acadia Pharmaceuticals Inc. Class Action Lawsuit

Company Name
Acadia Pharmaceuticals Inc.
Stock Symbol
ACAD
Class Period
June 15, 2020 to April 4, 2021
Motion Deadline
June 18, 2021
Court
Southern District of California
31 days left to seek lead plaintiff status

Case Summary

The Acadia Pharmaceuticals Inc. class action lawsuit charges Acadia Pharmaceuticals and certain of Acadia Pharmaceuticals’ executives with violations of the Securities Exchange Act of 1934 and seeks to represent all persons and entities other than defendants that purchased or otherwise acquired Acadia Pharmaceuticals securities between June 15, 2020 and April 4, 2021, inclusive (the “Class Period”).  The Acadia Pharmaceuticals class action lawsuit was commenced on April 19, 2021 in the Southern District of California and is captioned Marechal v. Acadia Pharmaceuticals Inc., No. 21-cv-00762.

Acadia Pharmaceuticals is a biopharmaceutical company that focuses on the development and commercialization of small molecule drugs that address unmet medical needs in central nervous system disorders.  Acadia Pharmaceuticals is developing pimavanserin as a treatment for dementia-related psychosis and as an adjunctive treatment for schizophrenia, as well as an adjunctive treatment for major depressive disorder.  In April 2016, the U.S. Food and Drug Administration (“FDA”) approved pimavanserin for the treatment of hallucinations and delusions associated with Parkinson’s disease psychosis.  In June 2020, Acadia Pharmaceuticals submitted a supplemental New Drug Application (“sNDA”) with the FDA to expand pimavanserin’s label to include treatment for dementia-related psychosis (the “pimavanserin sNDA”)

The Acadia Pharmaceuticals class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (i) the materials Acadia Pharmaceuticals submitted in support of the pimavanserin sNDA contained statistical and design deficiencies; (ii) accordingly, the pimavanserin sNDA lacked the evidentiary support that Acadia Pharmaceuticals had led investors to believe it possessed; (iii) the FDA was unlikely to approve the pimavanserin sNDA in its present form; and (iv) as a result, Acadia Pharmaceuticals’ public statements were materially false and misleading at all relevant times.

On March 8, 2021, Acadia Pharmaceuticals issued a press release providing a regulatory update on the pimavanserin sNDA, disclosing “that the Company received a notification from the [FDA] on March 3, 2021, stating that, as part of its ongoing review of the Company’s [sNDA], the FDA has identified deficiencies that preclude discussion of labeling and post-marketing requirements/commitments at this time.”  Acadia Pharmaceuticals advised that “[t]he notification does not specify the deficiencies identified by the FDA and there has been no clarification by the FDA at this time.”  On this news, Acadia Pharmaceuticals’ stock price fell more than 45%.

Then, on April 5, 2021, Acadia Pharmaceuticals issued a press release announcing that Acadia Pharmaceuticals had received a Complete Response Letter (“CRL”) from the FDA indicating that the pimavanserin sNDA could not be approved in its current form.  Specifically, Acadia Pharmaceuticals’ press release stated that, “the [FDA Division of Psychiatry], in the CRL, cited a lack of statistical significance in some of the subgroups of dementia, and insufficient numbers of patients with certain less common dementia subtypes as lack of substantial evidence of effectiveness to support approval.”  On this news, Acadia Pharmaceuticals’ stock price fell an additional 17%, further damaging investors.

The Private Securities Litigation Reform Act of 1995 permits any investor who purchased Acadia Pharmaceuticals securities during the Class Period to seek appointment as lead plaintiff in the Acadia Pharmaceuticals class action lawsuit.  A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.  A lead plaintiff acts on behalf of all other class members in directing the Acadia Pharmaceuticals class action lawsuit.  The lead plaintiff can select a law firm of its choice to litigate the Acadia Pharmaceuticals class action lawsuit.  An investor’s ability to share in any potential future recovery of the Acadia Pharmaceuticals action lawsuit is not dependent upon serving as lead plaintiff.  If you wish to serve as lead plaintiff of the Acadia Pharmaceuticals class action lawsuit or have questions concerning your rights regarding the Acadia Pharmaceuticals class action lawsuit, please provide your information here or contact counsel, Jennifer Caringal of Robbins Geller, at 800/449-4900 or 619/231-1058 or via e-mail at jcaringal@rgrdlaw.com.  Lead plaintiff motions for the Acadia Pharmaceuticals class action lawsuit must be filed with the court no later than June 18, 2021.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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